Bill Text: CA SB1112 | 2009-2010 | Regular Session | Amended
Bill Title: Redevelopment: plan amendment.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-05-27 - Held in committee and under submission. [SB1112 Detail]
Download: California-2009-SB1112-Amended.html
BILL NUMBER: SB 1112 AMENDED
BILL TEXT
AMENDED IN SENATE MAY 11, 2010
AMENDED IN SENATE APRIL 26, 2010
AMENDED IN SENATE APRIL 12, 2010
AMENDED IN SENATE MARCH 22, 2010
INTRODUCED BY Senator Oropeza
FEBRUARY 17, 2010
An act to amend Sections 33333.8, 33333.10, 33333.11, and 33413
of, and to add Section 33333.9 to, the Health and Safety Code,
relating to redevelopment.
LEGISLATIVE COUNSEL'S DIGEST
SB 1112, as amended, Oropeza. Redevelopment: plan
amendment: brownfield sites. amendment.
The Community Redevelopment Law authorizes the establishment of
redevelopment agencies in communities to address the effects of
blight in those communities. Existing law requires each agency to
prepare or cause to be prepared, and approve, a redevelopment plan
for each project area. Existing law requires that a redevelopment
plan contain specified time limitations and authorizes the extension
of time limitations under specified circumstances.
This bill would authorize an agency to extend the time limitation
on the effectiveness of a redevelopment plan and on the payment of
indebtedness and receipt of property taxes for not more than 10 years
if the agency determines, based on substantial evidence that, among
other conditions, at least 25% of the project area is a
brownfield site, as defined property where the agency
is authorized to take action to remedy or remove a release of
hazardous substances pursuant to existing law . The bill would
require the agency to include in certain reports specified
information relating to the brownfield site
that proper ty and would make other related and
conforming changes. The bill would specify that it applies only
to territory within the original boundary of a specified project area
of the Carson Redevelopment Agency. The bill would also
declare the need for a special statute.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 33333.8 of the Health and Safety Code is
amended to read:
33333.8. (a) Every redevelopment agency shall comply with and
fulfill its obligations with regard to the provision of affordable
housing as required by this part prior to the time limit on the
effectiveness of the redevelopment plan established pursuant to
Sections 33333.2, 33333.6, 33333.9, and 33333.10, and before the
agency exceeds a limit on the number of dollars of taxes that may be
divided and allocated to the redevelopment agency if required by
Section 33333.4 or the limit on the number of dollars of taxes in a
redevelopment plan. A legislative body may not adopt an ordinance
terminating a redevelopment project area if the agency has not
complied with its affordable housing obligations. Notwithstanding any
other provision of law, this section shall apply to each
redevelopment agency and each redevelopment project area established
or merged pursuant to this part and Part 1.5 (commencing with Section
34000), including project areas authorized pursuant to this chapter
and each individual project area that is authorized pursuant to any
other provision of law.
(1) The affordable housing obligations specified in subdivision
(a) shall include all of the following:
(A) The obligation to make deposits to and expenditures from the
Low and Moderate Income Housing Fund pursuant to Sections 33334.2,
33334.3, 33334.4, 33334.6, 33487, 33492.16, and other similar and
related statutes.
(B) The obligation to eliminate project deficits pursuant to
Sections 33334.6, 33487, 33492.16, and other similar and related
statutes.
(C) The obligation to expend or transfer excess surplus funds
pursuant to Section 33334.12 and other similar and related statutes.
(D) The obligation to provide relocation assistance pursuant to
Article 9 (commencing with Section 33410), Section 7260 of the
Government Code, or other applicable relocation laws.
(E) The obligation to provide replacement housing pursuant to
subdivision (a) of Section 33413, Article 9 (commencing with Section
33410), and other similar and related statutes.
(F) The obligation to provide inclusionary housing pursuant to
Section 33413 and other similar and related statutes and ordinances.
(2) A redevelopment agency shall not adopt an ordinance
terminating a redevelopment project area if the agency has not
complied with these obligations.
(b) If, on the date of the time limit on the effectiveness of the
redevelopment plan, a redevelopment agency has not complied with
subdivision (a), the time limit on the effectiveness of the
redevelopment plan, and, if necessary, the time limit for repayment
of indebtedness, shall be suspended until the agency has complied
with subdivision (a). In addition, the agency shall receive and use
all tax increment funds that are not pledged to repay indebtedness
until the agency has fully complied with its obligations.
(c) If, on the date of the time limit on the repayment of
indebtedness, the agency has not complied with subdivision (a), the
time limit on the repayment of indebtedness shall be suspended until
the agency has complied with subdivision (a). In addition, the agency
shall receive and use tax increment funds until the agency has fully
complied with its obligations.
(d) If, on the date of the time limit on the repayment of
indebtedness, the agency has complied with its obligations under
subdivision (a) and has moneys remaining in the Low and Moderate
Income Housing Fund, the agency shall transfer the remaining moneys
to a low and moderate income housing fund or account for a different
project area within the agency's jurisdiction, if one exists, or if a
different project area does not exist, the agency shall either
transfer the remaining moneys to a special fund of the community or
to the community or county housing authority. The community,
community housing authority, or county housing authority to which the
remaining moneys are transferred shall utilize the moneys for the
purposes of, and subject to the same restrictions that are applicable
to, the redevelopment agency under this part.
(e) If a redevelopment plan provides a limit on the total amount
of tax increment funds that may be received by a redevelopment agency
for any project area, and if that limit is reached prior to the
agency complying with its obligations pursuant to subdivision (a),
that limit is suspended until the agency has complied with
subdivision (a) and the agency shall receive and use tax increment
funds until the agency has fully complied with its obligations.
(f) If an agency fails to comply with its obligations pursuant to
this section, any person may seek judicial relief. The court shall
require the agency to take all steps necessary to comply with those
obligations, including, as necessary, the adoption of ordinances, to
incur debt, to obtain tax increments, to expend tax increments, and
to enter into contracts as necessary to meet its housing obligations
under this part.
SEC. 2. Section 33333.9 is added to the Health and Safety Code, to
read:
33333.9. (a) (1) Notwithstanding the time limits in subdivisions
(a) and (b) of Section 33333.6, an agency that adopted a
redevelopment plan on or before December 31, 1993, may, pursuant to
this section, amend the plan to extend the time limit on the
effectiveness of the plan for up to 10 additional years beyond the
limit allowed by subdivision (a) of Section 33333.6.
(2) In addition, the agency may, pursuant to this section, amend
the plan to extend the time limit on the payment of indebtedness and
receipt of property taxes to be not more than 10 years from the
termination of the effectiveness of the redevelopment plan as that
time limit has been amended pursuant to paragraph (1).
(b) A redevelopment plan for a project area may be amended
pursuant to subdivision (a) only after the agency determines, based
on substantial evidence, that all of the following conditions exist:
(1) At least 25 percent of the property within the project area is
a brownfield site property where the agency
is authorized to take action to remedy or remove a release of
hazardous substances pursuant to the Polanco Redevelopment Act
(Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1
of Division 24) .
(2) The redevelopment plan for the project area will expire within
five years of the date of the determination.
(3) The presence of the brownfield site
described property adds significant costs and time to the
ability of the agency to eliminate blight according to the
redevelopment plan.
(4) Significant blight will remain in the project area at the time
of the redevelopment plan effectiveness date limit unless that
effectiveness date limit is extended.
(5) None of the brownfield sites described
property included in the calculation for paragraph (1) of this
section was contaminated through actions of the agency.
(c) As used in this section, the following terms shall have the
following meanings:
(1) "Blight" has the same meaning as that term is given in Section
33030.
(2) "Brownfield site" means property where the agency is
authorized to take action to remedy or remove a release of hazardous
substances pursuant to the Polanco Redevelopment Act (Article 12.5
(commencing with Section 33459) of Chapter 4 of Part 1 of Division
24).
(3)
(2) "Necessary and essential parcels" means parcels
that are not blighted but are so necessary and essential to the
elimination of the blight that the parcels should be included within
the portion of the project area in which tax increment funds may be
spent. To be considered a "necessary and essential parcel" the parcel
shall meet one of the following requirements:
(A) The parcel is adjacent to one or more blighted parcels that
are to be assembled in order to create a parcel of adequate size,
given present standards and market conditions.
(B) The parcel or parcels on which it is necessary to construct a
public improvement to eliminate blight is adjacent to or near parcels
that are blighted.
(4) (A)
(3) "Project area" means the original
boundary of Project Area No. 1 of the Carson Redevelopment Agency, as
that project area was established in 1971.
(B) For purposes of this section, significant blight can exist in
a project area even though it is not prevalent in a project area. The
report submitted to the legislative body pursuant to Section 33352
shall identify on a map the portion of the project area in which
significant blight remains and the locations of the brownfield site.
(5)
(4) "Significant" means important and of a magnitude to
warrant agency assistance.
(d) For purposes of this section, significant blight can exist in
a project area even though it is not prevalent in a project area. The
report submitted to the legislative body pursuant to Section 33352
shall identify on a map the portion of the project area in which
significant blight remains and the locations of the property where
the agency is authorized to take action to remedy or remove a release
of hazardous substances pursuant to the Polanco Redevelopment Act
(Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1
of Division 24).
(d)
(e) After the limit on the payment of indebtedness and
receipt of property taxes that would have taken effect but for the
amendment pursuant to this section, except for funds deposited in the
Low and Moderate Income Housing Fund pursuant to Section 33334.2 or
33334.6, the agency shall spend tax increment funds only within the
portion of the project area that has been identified in the report
adopted pursuant to Section 33352 as the area containing blighted
parcels and necessary and essential parcels. Except as otherwise
provided in subdivisions (e) and (f) (f) and
(g) , an agency may continue to spend funds deposited in the
Low and Moderate Income Housing Fund in accordance with this
division.
(e)
(f) An agency shall not amend its redevelopment plan
pursuant to this section unless the agency first adopts a resolution
that finds, based on substantial evidence, all of the following:
(1) The community has adopted a housing element that the
department has determined, pursuant to Section 65585 of the
Government Code, to be in substantial compliance with the
requirements of Article 10.6 (commencing with Section 65580) of
Chapter 3 of Division 1 of Title 7 of the Government Code, or if
applicable, an eligible city or county within the jurisdiction of the
San Diego Association of Governments has adopted a
self-certification compliance with its adopted housing element
pursuant to Section 65585.1 of the Government Code.
(2) During the three fiscal years prior to the year in which the
amendment is adopted, the agency has not been included in the report
sent by the Controller to the Attorney General pursuant to
subdivision (b) of Section 33080.8 as an agency that has a "major
violation" pursuant to that section.
(3) After a written request by the agency and provision of the
information requested by the department, the department has issued a
letter to the agency confirming that the agency has not accumulated
an excess surplus in its Low and Moderate Income Housing Fund. As
used in this section, "excess surplus" has the same meaning as that
term is defined in Section 33334.12. The department shall develop a
methodology to collect information required by this section.
Information requested by the department shall include a certification
by the agency's independent auditor on the status of excess surplus
and submittal of data for the department to verify the status of
excess surplus. The independent auditor shall make the required
certification based on the Controller's office guidelines, which
shall include the methodology prescribed by the department pursuant
to subparagraph (D) of paragraph (3) of subdivision (g) of Section
33334.12. If the department does not respond to the written request
of the agency for this determination within 90 days of receipt of the
written request, compliance with this requirement shall be deemed
confirmed.
(f)
(g) Each redevelopment plan that was adopted prior to
January 1, 1976, that is amended pursuant to subdivision (a) shall
also be amended simultaneously to apply subdivision (b) of Section
33413 applicable to the redevelopment plan in accordance with
paragraph (1) of subdivision (d) of Section 33413.
(g)
(h) Any amendment to a redevelopment plan pursuant to
this section shall be made by ordinance pursuant to Article 12
(commencing with Section 33450). The ordinance shall be subject to
referendum.
(h)
(i) This section shall not apply to a project area that
retains its eligibility to incur indebtedness and receive tax
increment revenues pursuant to Section 33333.7.
(i)
(j) Any limitations established by an ordinance adopted
pursuant to this section shall not be applied to limit allocation of
taxes to an agency to the extent required to comply with Section
33333.8. In the event of a conflict between those limitations and
Section 33333.8, the limitation shall be subject to that section.
(j)
(k) This section shall apply only to the territory
within the original boundary of Project Area No. 1 of the Carson
Redevelopment Agency, as that project area was established in 1971.
SEC. 3. Section 33333.10 of the Health and Safety Code is amended
to read:
33333.10. (a) (1) Notwithstanding the time limits in subdivisions
(a) and (b) of Section 33333.6, an agency that adopted a
redevelopment plan on or before December 31, 1993, may, pursuant to
this section, amend that plan to extend the time limit on
effectiveness of the plan for up to 10 additional years beyond the
limit allowed by subdivision (a) of Section 33333.6.
(2) In addition, the agency may, pursuant to this section, amend
that plan to extend the time limit on the payment of indebtedness and
receipt of property taxes to be not more than 10 years from the
termination of the effectiveness of the redevelopment plan as that
time limit has been amended pursuant to paragraph (1).
(b) A redevelopment plan may be amended pursuant to subdivision
(a) only after the agency finds, based on substantial evidence, that
both of the following conditions exist:
(1) Significant blight remains within the project area.
(2) This blight cannot be eliminated without extending the
effectiveness of the plan and the receipt of property taxes.
(c) As used in this section:
(1) "Blight" has the same meaning as that term is given in Section
33030.
(2) "Significant" means important and of a magnitude to warrant
agency assistance.
(3) "Necessary and essential parcels" means parcels that are not
blighted but are so necessary and essential to the elimination of the
blight that these parcels should be included within the portion of
the project area in which tax increment funds may be spent.
"Necessary and essential parcels" are (A) parcels that are adjacent
to one or more blighted parcels that are to be assembled in order to
create a parcel of adequate size given present standards and market
conditions, and (B) parcels that are adjacent or near parcels that
are blighted on which it is necessary to construct a public
improvement to eliminate the blight.
(d) For purposes of this section, significant blight can exist in
a project area even though blight is not prevalent in a project area.
The report submitted to the legislative body pursuant to Section
33352 shall identify on a map the portion of the project area in
which significant blight remains.
(e) After the limit on the payment of indebtedness and receipt of
property taxes that would have taken effect but for the amendment
pursuant to this section, except for funds deposited in the Low and
Moderate Income Housing Fund pursuant to Section 33334.2 or 33334.6,
the agency shall spend tax increment funds only within the portion of
the project area that has been identified in the report adopted
pursuant to Section 33352 as the area containing blighted parcels and
necessary and essential parcels. Except as otherwise limited by
subdivisions (f) and (g), agencies may continue to spend funds
deposited in the Low and Moderate Income Housing Fund in accordance
with this division.
(f) (1) Except as otherwise provided in this subdivision, after
the limit on the payment of indebtedness and receipt of property
taxes that would have taken effect, but for the amendment pursuant to
this section, agencies shall only spend moneys from the Low and
Moderate Income Housing Fund for the purpose of increasing,
improving, and preserving the community's supply of housing at
affordable housing cost to persons and families of low, very low, or
extremely low income, as defined in Sections 50079.5, 50093, 50105,
and 50106. During this period, an agency that has adopted an
amendment pursuant to subdivision (a) may use moneys from the Low and
Moderate Income Housing Fund for the purpose of increasing,
improving, and preserving housing at affordable housing cost to
persons and families of moderate income as defined in Section 50093.
However, this amount shall not exceed, in a five-year period, the
amount of moneys from the Low and Moderate Income Housing Fund that
are used to increase, improve, and preserve housing at affordable
housing cost to persons and families of extremely low income, as
defined in Section 50106. In no case shall the amount expended for
housing for persons and families of moderate income exceed 15 percent
of the annual amount deposited in the Low and Moderate Income
Housing Fund during a five-year period and the number of housing
units affordable to moderate-income persons shall not exceed the
number of housing units affordable to extremely low income persons.
(2) Commencing with the first fiscal year that commences after the
date of the adoption of an amendment pursuant to subdivision (a) and
until the limit on the payment of indebtedness and receipt of
property taxes that would have taken effect but for the amendment
pursuant to this section, an agency that has adopted an amendment
pursuant to subdivision (a) may use moneys from the Low and Moderate
Income Housing Fund for the purpose of increasing, improving, and
preserving housing at affordable housing cost to persons and families
of moderate income as defined in Section 50093. However, this amount
shall not exceed, in a five-year period, 15 percent of the amount of
moneys deposited in the Low and Moderate Income Housing Fund during
that five-year period and shall only be used to assist housing
projects in which no less than 49 percent of the units are affordable
to and occupied by persons and families of low, very low, or
extremely low income. An agency may spend an additional amount of
moneys in the same or other housing projects to assist housing units
affordable to and occupied by moderate-income persons. However, this
amount shall not exceed the lesser of: the amount of moneys spent to
increase, improve, and preserve housing at affordable housing cost to
persons and families of extremely low income as defined in Section
50106, or 5 percent of the moneys deposited in the Low and Moderate
Income Housing Fund during that five-year period.
(g) (1) Except as provided in paragraph (2) or (3), commencing
with the first fiscal year that commences after the date of adoption
of an amendment pursuant to subdivision (a), not less than 30 percent
of all taxes that are allocated to the agency pursuant to Section
33670 from the redevelopment project area so amended shall be
deposited into that project's Low and Moderate Income Housing Fund
for the purposes specified in subdivision (f).
(2) In any fiscal year, the agency may deposit less than the
amount required by paragraph (1), but not less than the amount
required by Section 33334.2 or 33334.6, into the Low and Moderate
Income Housing Fund if the agency finds that the difference between
the amount deposited and the amount required by paragraph (1) is
necessary to make principal and interest payments during that fiscal
year on bonds sold by the agency to finance or refinance the
redevelopment project prior to six months before the date of adoption
of the amendment pursuant to subdivision (a). Bonds sold by the
agency prior to six months before the date of the adoption of the
amendment pursuant to subdivision (a) may only be refinanced,
refunded, or restructured after the date of the amendment pursuant to
subdivision (a). However, for purposes of this section, bonds
refinanced, refunded, or restructured after the date of the amendment
pursuant to subdivision (a) may only be treated as if sold on the
date the original bonds were sold if (A) the net proceeds were used
to refinance the original bonds, (B) there is no increase in the
amount of principal at the time of refinancing, restructuring, or
refunding, and (C) the time during which the refinanced indebtedness
is to be repaid does not exceed the date on which the existing
indebtedness would have been repaid.
(3) No later than 120 days prior to depositing less than the
amount required by paragraph (1) into the Low and Moderate Income
Housing Fund, the agency shall adopt, by resolution after a noticed
public hearing, a finding that the difference between the amount
allocated and the amount required by paragraph (1) is necessary to
make payments on bonds sold by the agency to finance or refinance the
redevelopment project and identified in the preliminary report
adopted pursuant to paragraph (9) of subdivision (e) of Section
33333.11, and specifying the amount of principal remaining on the
bonds, the amount of annual payments, and the date on which the
indebtedness will be repaid. Notice of the time and place of the
public hearing shall be published in a newspaper of general
circulation once a week for at least two successive weeks prior to
the public hearing. The agency shall make available to the public the
proposed resolution no later than the time of the publication of the
first notice of the public hearing. A copy of the resolution shall
be transmitted to the Department of Housing and Community Development
within 10 days after adoption.
(4) Notwithstanding paragraph (1), an agency that sells bonds on
or after the date of adoption of an amendment pursuant to subdivision
(a), the repayment of which is to be made from taxes allocated to
the agency pursuant to Section 33670 from the project so amended, may
elect to subordinate up to 16 2/3 percent of its annual 30-percent
Low and Moderate Income Housing Fund deposit obligation to the
payment of debt service on the bonds. If the agency makes that
election and in any year the agency has insufficient tax-increment
revenue available to pay debt service on the bonds to which the funds
from the Low and Moderate Income Housing Fund are subordinated, the
agency may deposit less than the full 100 percent of its annual
30-percent Low and Moderate Income Housing Fund obligation but only
to the extent necessary to pay that debt service and in no event
shall less than 83 1/3 percent of that obligation be deposited into
the Low and Moderate Income Housing Fund for that year. The
difference between the amount that is actually deposited in the Low
and Moderate Income Housing Fund and the full 100 percent of the
agency's 30-percent Low and Moderate Income Housing Fund deposit
obligation shall constitute a deficit in the Low and Moderate Income
Housing Fund subject to repayment pursuant to paragraph (5).
(5) If, pursuant to paragraph (2) or (4), the agency deposits less
than 30 percent of the taxes allocated to the agency pursuant to
Section 33670 in any fiscal year in the Low and Moderate Income
Housing Fund, the amount equal to the difference between 30 percent
of the taxes allocated to the agency pursuant to Section 33670 for
each affected redevelopment project area and the amount actually
deposited in the Low and Moderate Income Housing Fund for that fiscal
year shall be established as a deficit in the Low and Moderate
Income Housing Fund. Any new tax increment funds not encumbered
pursuant to paragraph (2) or (4) shall be utilized to reduce or
eliminate the deficit prior to entering into any new contracts,
commitments, or indebtedness. The obligations imposed by this section
are hereby declared to be an indebtedness of the redevelopment
project to which they relate, payable from taxes allocated to the
agency pursuant to Section 33670 and, notwithstanding any other
provision of law, shall constitute an indebtedness of the agency with
respect to the redevelopment project, and the agency shall continue
to receive allocations of taxes pursuant to Section 33670 until the
deficit is paid in full.
(h) An agency may not amend its redevelopment plan pursuant to
this section unless the agency first adopts a resolution that finds,
based on substantial evidence, all of the following:
(1) The community has adopted a housing element that the
department has determined pursuant to Section 65585 of the Government
Code to be in substantial compliance with the requirements of
Article 10.6 (commencing with Section 65580) of Chapter 3 of Division
1 of Title 7 of the Government Code, or if applicable, an eligible
city or county within the jurisdiction of the San Diego Association
of Governments has adopted a self-certification of compliance with
its adopted housing element pursuant to Section 65585.1 of the
Government Code.
(2) During the three fiscal years prior to the year in which the
amendment is adopted, the agency has not been included in the report
sent by the Controller to the Attorney General pursuant to
subdivision (b) of Section 33080.8 as an agency that has a "major
violation" pursuant to Section 33080.8.
(3) After a written request by the agency and provision of the
information requested by the department, the department has issued a
letter to the agency, confirming that the agency has not accumulated
an excess surplus in its Low and Moderate Income Housing Fund. As
used in this section, "excess surplus" has the same meaning as that
term is defined in Section 33334.12. The department shall develop a
methodology to collect information required by this section.
Information requested by the department shall include a certification
by the agency's independent auditor on the status of excess surplus
and submittal of data for the department to verify the status of
excess surplus. The independent auditor shall make the
required certification based on the
Controller's office guidelines which shall include the methodology
prescribed by the department pursuant to subparagraph (D) of
paragraph (3) of subdivision (g) of Section 33334.12. If the
department does not respond to the written request of the agency for
this determination within 90 days after receipt of the written
request, compliance with this requirement shall be deemed confirmed.
(i) Each redevelopment plan that has been adopted prior to January
1, 1976, that is amended pursuant to subdivision (a) shall also be
amended at the same time to make subdivision (b) of Section 33413
applicable to the redevelopment plan in accordance with paragraph (1)
of subdivision (d) of Section 33413.
(j) The amendment to the redevelopment plan authorized pursuant to
this section shall be made by ordinance pursuant to Article 12
(commencing with Section 33450). The ordinance shall be subject to
referendum as prescribed by law for ordinances of the legislative
body.
(k) This section shall not apply to a project area that retains
its eligibility to incur indebtedness and receive tax increment
revenues pursuant to Section 33333.7.
(l) The limitations established in the ordinance adopted pursuant
to this section shall not be applied to limit allocation of taxes to
an agency to the extent required to comply with Section 33333.8. In
the event of a conflict between these limitations and the obligations
under Section 33333.8, the limitation established in the ordinance
shall be suspended pursuant to Section 33333.8.
(m) This section shall not apply to an amendment to extend the
time limit on the effectiveness of a plan pursuant to Section
33333.9.
SEC. 4. Section 33333.11 of the Health and Safety Code is amended
to read:
33333.11. (a) In order to adopt an amendment pursuant to Section
33333.9 or Section 33333.10, the redevelopment agency shall also
comply with the procedures in this section.
(b) Before adopting an amendment of the plan, the agency shall
hold a public hearing on the proposed amendment. The notice of the
public hearing shall comply with Section 33452.
(c) Prior to the publication of the notice of the public hearing
on the proposed amendment, the agency shall consult with each
affected taxing agency with respect to the proposed amendment. At a
minimum, the agency shall give each affected taxing agency the
opportunity to meet with representatives of the agency for the
purpose of discussing the effect of the proposed amendment upon the
affected taxing agency and shall notify each affected taxing agency
that any written comments from the affected taxing agency will be
included in the report to the legislative body.
(d) Prior to the publication of the notice of the public hearing
on the proposed amendment, the agency shall consult with and obtain
the advice of members of a project area committee, if a project area
committee exists, and residents and community organizations and
provide to those persons and organizations, including the project
area committee, if any, the amendment prior to the agency's
submitting the amendment to the legislative body. In addition, the
preliminary report prepared pursuant to subdivision (e) shall be made
available at no cost to the project area committee, if one exists,
and residents and community organizations not later than 120 days
prior to holding a public hearing on the proposed amendment.
(e) No later than 120 days prior to holding a public hearing on
the proposed amendment, the agency shall send to each affected taxing
entity, as defined in Section 33353.2, the Department of Finance,
and the Department of Housing and Community Development, a
preliminary report that contains all of the following:
(1) A map of the project area that identifies the portion, if any,
of the project area that is no longer blighted and the portion of
the project area that is blighted and the portion of the project area
that contains necessary and essential parcels for the elimination of
the remaining blight.
(2) A description of the remaining blight.
(3) A description of the projects or programs proposed to
eliminate the remaining blight.
(4) A description of how the project or programs will improve the
conditions of blight.
(5) The reasons why the projects or programs cannot be completed
without extending the time limits on the effectiveness of the plan
and receipt of tax increment revenues.
(6) The proposed method of financing these programs or projects.
This description shall include the amount of tax increment revenues
that is projected to be generated during the period of the extension,
including amounts projected to be deposited into the Low and
Moderate Income Housing Fund and amounts to be paid to affected
taxing entities. This description shall also include sources and
amounts of moneys other than tax increment revenues that are
available to finance these projects or programs. This description
shall also include the reasons that the remaining blight cannot
reasonably be expected to be reversed or alleviated by private
enterprise or governmental action, or both, without the use of the
tax increment revenues available to the agency because of the
proposed amendment.
(7) If the redevelopment plan is to be amended pursuant
to Section 33333.10, an amendment to the agency's implementation
plan that includes, but is not limited to, the agency's housing
responsibilities pursuant to Section 33490. However, the agency shall
not be required to hold a separate public hearing on the
implementation plan pursuant to subdivision (d) of Section 33490 in
addition to the public hearing on the amendment to the redevelopment
plan.
(8) A new neighborhood impact report if required by subdivision
(m) of Section 33352.
(9) A description of each bond sold by the agency to finance or
refinance the redevelopment project prior to six months before the
date of adoption of the proposed amendment, and listing for each bond
the amount of remaining principal, the annual payments, and the date
that the bond will be paid in full.
(10) If the redevelopment plan is to be amended
pursuant to Section 33333.9, a study documenting the presence of the
brownfield sites property where the agency is
authorized to take action to remedy or remove a release of hazardous
substances pursuant to the Polanco Redevelopment Act
(Article 12.5 (commencing with Section 33459) of Chapter 4 of Part 1
of Division 24) and the locations of the sites
properties identified on the map of the project
area required in paragraph (1).
(f) No later than 120 days prior to holding a public hearing on
the proposed amendment, the agency shall send the proposed amendment
to the planning commission. If the planning commission does not
report upon the amendment within 30 days after its submission by the
agency, the planning commission shall be deemed to have waived its
report and recommendations concerning the amendment.
(g) No later than 45 days prior to the public hearing on the
proposed amendment by the agency or the joint public hearing of the
agency and the legislative body, the agency shall notify each
affected taxing entity, the Department of Finance, the Department of
Housing and Community Development, and each individual and
organization that submitted comments on the preliminary report by
certified mail of the public hearing, the date of the public hearing,
and the proposed amendment. This notice shall be accompanied by the
report required to be prepared pursuant to subdivision (h).
(h) No later than 45 days prior to the public hearing on the
proposed amendment by the agency or the joint public hearing by the
agency and the legislative body, the agency shall adopt a report to
the legislative body containing all of the following:
(1) All of the information required to be contained in the
preliminary report prepared pursuant to subdivision (e).
(2) The report and recommendation of the planning commission.
(3) A negative declaration, environmental impact report, or other
document that is required in order to comply with the California
Environmental Quality Act (Division 13 (commencing with Section
21000) of the Public Resources Code).
(4) A summary of the consultations with the affected taxing
entities. If any of the affected taxing entities, a project area
committee, if any, residents, or community organizations have
expressed written objections or concerns with the proposed amendment
as part of these consultations, the agency shall include a response
to these concerns.
(5) A summary of the consultation with residents and community
organizations, including the project area committee, if any.
(i) After receiving the recommendation of the agency on the
proposed amendment, and not sooner than 30 days after the submission
of changes to the planning commission, the legislative body shall
hold a public hearing on the proposed amendment. The notice of the
public hearing shall comply with Section 33452.
(j) As an alternative to the separate public hearing required by
subdivision (i), the agency and the legislative body, with the
consent of both, may hold a joint public hearing on the proposed
amendment. Notice of this public hearing shall comply with Section
33452. When a joint public hearing is held and the legislative body
is also the agency, the legislative body may adopt the amended plan
with no actions required of the agency. If, after the public hearing,
the legislative body determines that the amendment to the plan is
necessary or desirable, the legislative body shall adopt an ordinance
amending the ordinance adopting the plan thus amended. The ordinance
adopting the amendment shall contain findings that both (1)
significant blight remains within the project area, and (2) the
blight cannot be eliminated without the extension of the
effectiveness of the plan and receipt of tax increment revenues.
(k) If an affected taxing entity, the Department of Finance, or
the Department of Housing and Community Development believes that
significant remaining blight does not exist within the portion of the
project area designated as blighted in the report to the legislative
body regarding a proposed amendment to be adopted pursuant to
Section 33333.10, the affected taxing entity, the Department of
Finance, or the Department of Housing and Community Development may
request the Attorney General to participate in the amendment process.
The affected taxing entity, the Department of Finance, or the
Department of Housing and Community Development shall request this
participation within 21 days after receipt of the notice of the
public hearing sent pursuant to subdivision (g). The Attorney General
shall determine whether or not to participate in the amendment
process. The Attorney General may consult with and request the
assistance of departments of the state and any other persons or
groups that are interested or that have expertise in redevelopment.
The Attorney General may participate in the amendment process by
requesting additional information from the agency, conducting his or
her own review of the project area, meeting with the agency and any
affected taxing entity, submitting evidence for consideration at the
public hearing, or presenting oral evidence at the public hearing. No
later than five days prior to the public hearing on the proposed
amendment, the Attorney General shall notify each affected taxing
agency, each department that has requested the Attorney General to
review the proposed amendment, and the redevelopment agency with
regard to whether the Attorney General will participate in the
amendment process and, if so, how he or she will participate, on
their behalf.
(l) The Attorney General may bring a civil action pursuant to
Section 33501 to determine the validity of an amendment adopted
pursuant to Section 33333.10. The Department of Finance and the
Department of Housing and Community Development shall be considered
interested persons for the purposes of protecting the interests of
the state pursuant to Section 863 of the Code of Civil Procedure in
any action brought with regard to the validity of an ordinance
adopting a proposed amendment pursuant to Section 33333.10. Either
department may request the Attorney General to bring an action
pursuant to Section 33501 to determine the validity of an amendment
adopted pursuant to Section 33333.10. Actions brought pursuant to
this subdivision are in addition to any other actions that may be
brought by the Attorney General or other persons.
SEC. 5. Section 33413 of the Health and Safety Code is amended to
read:
33413. (a) Whenever dwelling units housing persons and families
of low or moderate income are destroyed or removed from the low- and
moderate-income housing market as part of a redevelopment project
that is subject to a written agreement with the agency or where
financial assistance has been provided by the agency, the agency
shall, within four years of the destruction or removal, rehabilitate,
develop, or construct, or cause to be rehabilitated, developed, or
constructed, for rental or sale to persons and families of low or
moderate income, an equal number of replacement dwelling units that
have an equal or greater number of bedrooms as those destroyed or
removed units at affordable housing costs within the territorial
jurisdiction of the agency. When dwelling units are destroyed or
removed after September 1, 1989, 75 percent of the replacement
dwelling units shall replace dwelling units available at affordable
housing cost in the same or a lower income level of very low income
households, lower income households, and persons and families of low
and moderate income, as the persons displaced from those destroyed or
removed units. When dwelling units are destroyed or removed on or
after January 1, 2002, 100 percent of the replacement dwelling units
shall be available at affordable housing cost to persons in the same
or a lower income category (low, very low, or moderate), as the
persons displaced from those destroyed or removed units.
(b) (1) Prior to the time limit on the effectiveness of the
redevelopment plan established pursuant to Sections 33333.2, 33333.6,
33333.9, and 33333.10 at least 30 percent of all new and
substantially rehabilitated dwelling units developed by an agency
shall be available at affordable housing cost to, and occupied by,
persons and families of low or moderate income. Not less than 50
percent of the dwelling units required to be available at affordable
housing cost to, and occupied by, persons and families of low or
moderate income shall be available at affordable housing cost to, and
occupied by, very low income households.
(2) (A) (i) Prior to the time limit on the effectiveness of the
redevelopment plan established pursuant to Sections 33333.2, 33333.6,
33333.9 and 33333.10 at least 15 percent of all new and
substantially rehabilitated dwelling units developed within a project
area under the jurisdiction of an agency by public or private
entities or persons other than the agency shall be available at
affordable housing cost to, and occupied by, persons and families of
low or moderate income. Not less than 40 percent of the dwelling
units required to be available at affordable housing cost to, and
occupied by, persons and families of low or moderate income shall be
available at affordable housing cost to, and occupied by, very low
income households.
(ii) To satisfy this paragraph, in whole or in part, the agency
may cause, by regulation or agreement, to be available, at affordable
housing cost, to, and occupied by, persons and families of low or
moderate income or to very low income households, as applicable, two
units outside a project area for each unit that otherwise would have
been required to be available inside a project area.
(iii) On or after January 1, 2002, as used in this paragraph and
in paragraph (1), "substantially rehabilitated dwelling units" means
all units substantially rehabilitated, with agency assistance. Prior
to January 1, 2002, "substantially rehabilitated dwelling units"
shall mean substantially rehabilitated multifamily rented dwelling
units with three or more units regardless of whether there is agency
assistance, or substantially rehabilitated, with agency assistance,
single-family dwelling units with one or two units.
(iv) As used in this paragraph and in paragraph (1), "substantial
rehabilitation" means rehabilitation, the value of which constitutes
25 percent of the after rehabilitation value of the dwelling,
inclusive of the land value.
(v) To satisfy this paragraph, the agency may aggregate new or
substantially rehabilitated dwelling units in one or more project
areas, if the agency finds, based on substantial evidence, after a
public hearing, that the aggregation will not cause or exacerbate
racial, ethnic, or economic segregation.
(B) To satisfy the requirements of paragraph (1) and subparagraph
(A), the agency may purchase, or otherwise acquire or cause by
regulation or agreement the purchase or other acquisition of,
long-term affordability covenants on multifamily units that restrict
the cost of renting or purchasing those units that either: (i) are
not presently available at affordable housing cost to persons and
families of low or very low income households, as applicable; or (ii)
are units that are presently available at affordable housing cost to
this same group of persons or families, but are units that the
agency finds, based upon substantial evidence, after a public
hearing, cannot reasonably be expected to remain affordable to this
same group of persons or families.
(C) To satisfy the requirements of paragraph (1) and subparagraph
(A), the long-term affordability covenants purchased or otherwise
acquired pursuant to subparagraph (B) shall be required to be
maintained on dwelling units at affordable housing cost to, and
occupied by, persons and families of low or very low income, for the
longest feasible time but not less than 55 years for rental units and
45 years for owner-occupied units. Not more than 50 percent of the
units made available pursuant to paragraph (1) and subparagraph (A)
may be assisted through the purchase or acquisition of long-term
affordability covenants pursuant to subparagraph (B). Not less than
50 percent of the units made available through the purchase or
acquisition of long-term affordability covenants pursuant to
subparagraph (B) shall be available at affordable housing cost to,
and occupied by, very low income households.
(D) To satisfy the requirements of paragraph (1) and subparagraph
(A), each mutual self-help housing unit, as defined in subparagraph
(C) of paragraph (1) of subdivision (f) of Section 33334.3, that is
subject to a 15-year deed restriction shall count as one-third of a
unit.
(3) The requirements of this subdivision shall apply independently
of the requirements of subdivision (a). The requirements of this
subdivision shall apply, in the aggregate, to housing made available
pursuant to paragraphs (1) and (2), respectively, and not to each
individual case of rehabilitation, development, or construction of
dwelling units, unless an agency determines otherwise.
(4) Each redevelopment agency, as part of the implementation plan
required by Section 33490, shall adopt a plan to comply with the
requirements of this subdivision for each project area. The plan
shall be consistent with, and may be included within, the community's
housing element. The plan shall be reviewed and, if necessary,
amended at least every five years in conjunction with either the
housing element cycle or the plan implementation cycle. The plan
shall ensure that the requirements of this subdivision are met every
10 years. If the requirements of this subdivision are not met by the
end of each 10-year period, the agency shall meet these goals on an
annual basis until the requirements for the 10-year period are met.
If the agency has exceeded the requirements within the 10-year
period, the agency may count the units that exceed the requirement in
order to meet the requirements during the next 10-year period. The
plan shall contain the contents required by paragraphs (2), (3), and
(4) of subdivision (a) of Section 33490.
(c) (1) The agency shall require that the aggregate number of
replacement dwelling units and other dwelling units rehabilitated,
developed, constructed, or price restricted pursuant to subdivision
(a) or (b) remain available at affordable housing cost to, and
occupied by, persons and families of low-income, moderate-income, and
very low income households, respectively, for the longest feasible
time, but for not less than 55 years for rental units, 45 years for
home ownership units, and 15 years for mutual self-help housing
units, as defined in subparagraph (C) of paragraph (1) of subdivision
(f) of Section 33334.3, except as set forth in paragraph (2).
Nothing in this paragraph precludes the agency and the developer of
the mutual self-help housing units from agreeing to 45-year deed
restrictions.
(2) Notwithstanding paragraph (1), the agency may permit sales of
owner-occupied units prior to the expiration of the 45-year period,
and mutual self-help housing units prior to the expiration of the
15-year period, established by the agency for a price in excess of
that otherwise permitted under this subdivision pursuant to an
adopted program that protects the agency's investment of moneys from
the Low and Moderate Income Housing Fund, including, but not limited
to, an equity sharing program that establishes a schedule of equity
sharing that permits retention by the seller of a portion of those
excess proceeds, based on the length of occupancy. The remainder of
the excess proceeds of the sale shall be allocated to the agency, and
deposited into the Low and Moderate Income Housing Fund. The agency
shall, within three years from the date of sale pursuant to this
paragraph of each home ownership or mutual self-help housing unit
subject to a 45-year deed restriction, and every third mutual
self-help housing unit subject to a 15-year deed restriction, expend
funds to make affordable an equal number of units at the same or
lowest income level as the unit or units sold pursuant to this
paragraph, for a period not less than the duration of the original
deed restrictions. Only the units originally assisted by the agency
shall be counted towards the agency's obligations under Section
33413.
(3) The requirements of this section shall be made enforceable in
the same manner as provided in paragraph (7) of subdivision (f) of
Section 33334.3.
(4) If land on which the dwelling units required by this section
are located is deleted from the project area, the agency shall
continue to require that those units remain affordable as specified
in this subdivision.
(5) For each unit counted towards the requirements of subdivisions
(a) and (b), the agency shall require the recording in the office of
the county recorder of covenants or restrictions that ensure
compliance with this subdivision. With respect to covenants or
restrictions that are recorded on or after January 1, 2008, the
agency shall comply with the requirements of paragraphs (3) and (4)
of subdivision (f) of Section 33334.3.
(d) (1) This section applies only to redevelopment projects for
which a final redevelopment plan is adopted pursuant to Article 5
(commencing with Section 33360) on or after January 1, 1976, and to
areas that are added to a project area by amendment to a final
redevelopment plan adopted on or after January 1, 1976. In addition,
subdivision (a) shall apply to any other redevelopment project with
respect to dwelling units destroyed or removed from the low- and
moderate-income housing market on or after January 1, 1996,
irrespective of the date of adoption of a final redevelopment plan or
an amendment to a final redevelopment plan adding areas to a project
area. Additionally, any agency may, by resolution, elect to make all
or part of the requirements of this section applicable to any
redevelopment project of the agency for which the final redevelopment
plan was adopted prior to January 1, 1976. In addition, subdivision
(b) shall apply to redevelopment plans adopted prior to January 1,
1976, for which an amendment is adopted pursuant to Sections 33333.9
and 33333.10, except that subdivision (b) shall apply to those
redevelopment plans prospectively only so that the requirements of
subdivision (b) shall apply only to new and substantially
rehabilitated dwelling units for which the building permits are
issued on or after the date that the ordinance adopting the amendment
pursuant to Sections 33333.9 and 33333.10 becomes effective.
(2) An agency may, by resolution, elect to require that whenever
dwelling units housing persons or families of low or moderate income
are destroyed or removed from the low- and moderate-income housing
market as part of a redevelopment project, the agency shall replace
each dwelling unit with up to three replacement dwelling units
pursuant to subdivision (a).
(e) Except as otherwise authorized by law, this section does not
authorize an agency to operate a rental housing development beyond
the period reasonably necessary to sell or lease the housing
development.
(f) Notwithstanding subdivision (a), the agency may replace
destroyed or removed dwelling units with a fewer number of
replacement dwelling units if the replacement dwelling units meet
both of the following criteria:
(1) The total number of bedrooms in the replacement dwelling units
equals or exceeds the number of bedrooms in the destroyed or removed
units. Destroyed or removed units having one or no bedroom are
deemed for this purpose to have one bedroom.
(2) The replacement units are affordable to and occupied by the
same income level of households as the destroyed or removed units.
(g) "Longest feasible time," as used in this section, includes,
but is not limited to, unlimited duration.
SEC. 6. The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique circumstances of the original territory within
Project Area No. 1 of the Carson Redevelopment Agency. The facts
constituting the special circumstances are:
The original territory of Project Area No. 1 of the Carson
Redevelopment Agency, as established in 1971, contains an unusually
large amount of real property that is contaminated by hazardous
substances. The Carson Redevelopment Agency's remediation or removal
of those hazardous substances from that property requires more time
and more tax increment revenues than allowed
by Section 33333.10 of the Health and Safety Code.
